payment of tax and penalty through portal of GST was eminently sustainable

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As per High Court of Kerala Fashion Marble & Granite Company (P.) Ltd.vs. Assistant State Tax Officer dated JULY  6, 2018 ,Section 129, read with section 49, of the Central Goods and Services Tax Act, 2017/Section 129, read with section 49, of the Kerala State Goods and Services Tax Act, 2017 . Detention, seizure and release of goods and conveyances in transit (NR) , Competent Authority had detained goods of assessee under transport and issued on it a show cause notice under section 129(3) demanding tax and penalty .Assessee paid amount of tax and penalty through portal of GST under section 49 ,When assessee wanted release of goods, Competent Authority insisted that assessee ought to have paid amount of tax and penalty ‘either in cash or through demand draft’

1.Whether Competent Authority was justified in insisting assessee to pay amount of tax and penalty ‘either in cash or through demand draft’ – Held, no .

2.Whether payment of tax and penalty through portal of GST was eminently sustainable – Held, yes .

3.Whether Competent Authority was to be directed to release goods in question after receiving receipt of payment from assessee – Held, yes

Citation: [2018] 96 taxmann.com 89 (Kerala)